Small Benefit Exemption Scheme – What It Is and How You Can Be Eligible

What is the Small Benefit Exemption Scheme?

The Small Benefit Exemption Scheme enables contractors in Ireland to receive non-cash benefits without incurring tax liabilities. This scheme serves as a tax-efficient way to reward yourself or your employees in 2025! Purchases under the scheme are tax-free and exempt from PAYE, USC, and PRSI, making it an attractive option for contractors seeking to maximise their income efficiently.

What Has Changed in 2025?

In Budget 2025, significant updates were introduced to the Small Benefit Exemption Scheme:

• The maximum value of the non-cash benefit has increased to €1,500 annually, up from the previous limit of €1,000.
• Contractors can now avail of up to five tax-free benefits per year, provided the total value does not exceed €1,500.

These changes present a valuable opportunity for contractors to save even more while enjoying additional flexibility in how benefits are utilised.

Where Can I Purchase a Gift Voucher?

Icon Accounting has partnered with Me2You to make it simple for Icon Accounting contractors to avail of the Small Benefit Exemption Scheme. If you wish to order a voucher, simply contact your dedicated Account Manager at Icon Accounting for a step-by-step guide on the process.

If you prefer alternative options, such as the One4all voucher, please ensure that the receipt is issued in your Company Name. Your Payroll Account Manager will then process it as a business expense through your payroll once you provide the receipt.

Why Purchase a Me2You Gift Card Through Icon Accounting?

Purchasing a gift card personally would cost you the full amount, €1,500. However, by purchasing the gift card through the Small Benefit Exemption Scheme with Icon Accounting, you will benefit from tax relief. As the purchase is exempt from Income Tax, USC (Universal Social Charge), and PRSI, the actual cost of the gift card reduces significantly to just €780.

How Often Can I Avail of the Small Benefit Exemption Scheme?

Revenue has announced that for the tax year 2025, the single gift rule no longer applies. This means you can make up to five purchases per year, as long as the total does not exceed the €1,500 annual limit.

Is There a Deadline for Purchasing a Me2You Gift Card?

No, there is no deadline for ordering gift cards. You can purchase them at any time throughout the year. However, you must have an outstanding invoice waiting to be paid in order for the gift card to be purchased and processed through your payroll.

Where Can I Spend My Me2You Gift Voucher?

Me2You Gift Cards can be used in thousands of retailers and online stores across Ireland. To explore the full list of participating stores, please visit the Me2You website.

Got a Question?

For more information about the Small Benefit Exemption Scheme or assistance with purchasing a gift card, contact your Payroll Account Manager at Icon Accounting on 01-8077106 or email info@iconaccounting.ie. We’ll be happy to help!